TMS Targets October Start for Sangihe Gold Mine Production
TMS Targets October Start for Sangihe Gold Mine Production
08 Sep 2026, 03:47 PM 53

PT Tambang Mas Sangihe (TMS) is targeting the reissuance of approval for gold mining production operations on Sangihe Island, North Sulawesi, in October 2026.TMS President Director Terry Filbert said the company is currently still awaiting the reissuance of the production operations approval, which was previously granted in 2021 but was later temporarily revoked on administrative grounds in 2023.“We hope that in the near future, hopefully next month, we will receive it,” Filbert said during a discussion with journalists on Thursday, September 3, 2026.According to Filbert, the company has fulfilled all requirements requested by the government. The application for the reissuance of the production operations approval was submitted on October 25, 2025, and the company is currently waiting for the Ministry of Energy and Mineral Resources (ESDM) to complete the process.TMS, he said, has completed a feasibility study, an environmental impact assessment (AMDAL), a project development plan, and a post-mining plan, and has also prepared a reclamation guarantee.The company also said it is still conducting community engagement around the proposed mining area.“We actually have not completed the community engagement. We are still in the process of engaging with the community — this is an ongoing process,” he said.Only 65 HectaresFilbert said TMS has a relatively large contract area of around 42,000 hectares. However, only around 65 hectares will be used for mining activities because the area has been approved under the AMDAL.Filbert stressed that holding a large concession area does not mean the entire area will be used for mining activities.“Just because we have 42,000 hectares does not mean we will use 42,000 hectares,” he said.He said mining activities will only be carried out in designated areas that have previously been planned and explored.Illegal Mining ActivitiesFilbert also stressed that TMS has never conducted mining or gold processing activities at the site.Instead, he suspected that illegal mining activities had been taking place while the company’s licensing process was delayed since 2023.“We have never conducted any mining activities at all. We have never carried out a single process here,” he said.According to Filbert, the illegal mining activities even involved heavy equipment. He said there were as many as around 50 units of heavy equipment at the site.Filbert also claimed that the activities had caused environmental damage and accidents.He said at least six people had died in illegal mining activities that he was aware of and that had been publicly reported. He also suspected that mangrove areas and protected forests had been damaged, and that mercury contamination had occurred in water and soil.Company Promises Priority for Local WorkersIf the production operations approval is reissued, TMS said its mining activities will provide economic benefits for the people of Sangihe.The company will prioritize qualified local workers who meet the required qualifications.“If you are from Sangihe, you will have the first opportunity for the job if you meet the qualifications,” he said.In addition to creating direct and indirect employment, TMS plans to provide technical training and employment benefits in accordance with Indonesian labor regulations.Filbert also said the company will provide wages and various employment benefits, including health insurance and social security.He hopes the company’s activities can drive growth in non-mining sectors, including services, trade, tourism, and transportation.TMS Plans to Support TourismTMS also said it plans to support tourism development in Sangihe, particularly diving tourism.Filbert said Sangihe has marine tourism potential, including coral reefs, manta rays, and a number of diving sites.The company is even considering supporting and subsidizing improved air connectivity to Sangihe to encourage tourist arrivals.“Not everyone can be a miner. Not everyone wants to be a miner,” he said.According to him, developing non-mining sectors is important so that the economic benefits generated by the company do not depend solely on employment in the mining sector.Company Promises Reclamation and Environmental MonitoringRegarding environmental protection, Filbert said TMS has prepared a reclamation guarantee of around USD 500,000.The company will also continuously monitor water quality and biodiversity, he said.Waste and tailings management have been planned from the outset. Reclamation will also be carried out gradually throughout the mining activities.“As we conduct mining, we will carry out reclamation. Then eventually, we will close and restore the entire area,” he said.Filbert said the company will preserve the topsoil during mining activities so that it can be reused in the reclamation process.Former mining areas will later be replanted with vegetation so that they are expected to resemble conditions before mining activities began.Geothermal Power Plant Under ConsiderationIn addition to mining activities, TMS said it plans to conduct an initial study on the development of a geothermal power plant on Sangihe Island.Filbert said the proposed power plant could have a capacity of 8 to 10 megawatts.According to him, a more stable electricity supply could help address the island’s current dependence on diesel-powered generators.Filbert believes a stable electricity supply would not only support the company’s operations but could also attract other industries to invest in Sangihe.“At the same time, the electricity could be distributed across the entire island,” he said.TMS also plans to improve internet connectivity, including providing high-speed internet access to schools and village offices through Starlink.The company said it has provided scholarships to university students and plans to continue supporting education and community facilities.TMS Licensing HistoryTMS originated from a Contract of Work granted by the Indonesian government in 1997 to a company called Bre-X. The project was subsequently acquired by a company then known as East Asia Minerals in 2007.Filbert joined the company in 2017 with the task of bringing the project to the production stage.TMS subsequently obtained environmental impact assessment (AMDAL) approval in 2020 and production operations approval in 2021.However, the production operations approval was later temporarily revoked on administrative grounds in 2023. Since then, the company has reapplied to commence production operations.Filbert said the company is currently waiting for the Ministry of Energy and Mineral Resources to complete the process so that the project can enter the production stage.

BUMI Acquires Loyal Metals (LLM) for IDR 1 Trillion, Gaining Gold and Copper Assets in Australia
BUMI Acquires Loyal Metals (LLM) for IDR 1 Trillion, Gaining Gold and Copper Assets in Australia
07 Sep 2026, 03:43 PM 66

PT Bumi Resources Tbk. (BUMI), through its Australian subsidiary Bumi Resources Australia Pty Ltd (BRA), has acquired 100% of the shares of Loyal Metals Ltd. (LLM), an Australian copper and gold mining company, in a transaction valued at IDR 1 trillion.Bumi Resources Director R.A. Sri Dharmayanti said the transaction was carried out on September 4, 2026, through BRA, a BUMI subsidiary wholly owned by the company.“The company, through its Australian subsidiary Bumi Resources Australia Pty Ltd, which is a subsidiary of the company established under Australian law and 100% owned by the company, has carried out an acquisition transaction for 175,710,515 shares, representing 100% of the issued and fully paid-up shares of Loyal,” BUMI said in an information disclosure on Friday (September 4, 2026).With the transaction, BUMI, through BRA, has become the 100% shareholder of Loyal Metals Ltd., a company established under Australian law.The acquisition transaction was valued at IDR 1,004,742,244,136.50 (IDR 1 trillion), equivalent to AUD 79,069,731.75. As a result, Loyal Metals is now fully indirectly owned by BUMI through BRA.As Indonesia’s largest coal producer, BUMI is stepping up its business diversification strategy.Previously, PT Bumi Etam Chemical (BEC) held the groundbreaking ceremony for the national strategic project (PSN) to gasify coal into methanol on Monday (August 31, 2026).The project is located in the Batuta Chemical Industrial Park (BCIP) area, Bengalon District, East Kutai Regency, East Kalimantan. Construction will utilize approximately 93 hectares of land.The joint venture between two subsidiaries of PT Bumi Resources Tbk (BUMI), namely PT Arutmin Indonesia and PT Kaltim Prima Coal (KPC), targets production of around 2 million tons of methanol per year and has the potential to save up to IDR 7.1 trillion in foreign exchange annually.BEC President Director Rio Supin said the company has entered the engineering stage through the preparation of a Front-End Engineering Design (FEED) and an Engineering, Procurement, Construction, and Commissioning (EPCC) Framework Agreement with PT Istana Karang Laut (IKL) and China National Chemical Engineering Co., Ltd. (CNCEC) since July 29, 2026.“Indonesia’s first coal gasification project is ready to enter the implementation stage, with commissioning targeted for 2029. BEC is ready to support national energy independence and resilience,” Rio said.

Darma Henwa (DEWA) Diversifies Business Portfolio to Drive Sustainable Growth
Darma Henwa (DEWA) Diversifies Business Portfolio to Drive Sustainable Growth
05 Sep 2026, 04:13 PM 38

PT Darma Henwa Tbk (DEWA) is preparing to expand its business portfolio by entering the critical minerals and precious metals sectors beyond coal. The diversification move is aimed at transforming the company into a highly competitive investment holding company with sustainable performance growth.The company has long been widely known as an integrated mining services contractor, handling numerous national coal projects. However, management is now refining a long-term roadmap to develop its own mining concession assets while also targeting higher-value-added mineral commodities."Historically, we have indeed been a mining services contractor, but going forward, Darma Henwa wants to become an investment holding company. Going forward, we will not only rely on coal, but will also begin entering other sectors and developing our own assets, particularly the Gayo Mineral Resources gold and copper mine in Aceh, which is currently in the exploration phase," DEWA Director Ricardo Silaen said in The Fundamentals podcast broadcast on YouTube by IDX Channel, as quoted on Saturday (Sept. 5, 2026).Although it is beginning to position itself as a mine owner, the issuer with the DEWA stock code said its core expertise in mining contracting will remain a pillar of the company's operations. The company has just secured a new project contract while actively exploring opportunities to work on nickel and other mineral mines."We want to build an integrated, diversified business that delivers sustainable growth with a combination of good margins and growth. Going forward, we see opportunities in other minerals such as nickel as a contractor, while also developing Gayo as a mine owner," Ricardo said.To strengthen its business ecosystem and reduce operating costs, the company has established three supporting business units, namely DH Listrik, Arunika in the hospitality sector, and DH Infrastruktur. The establishment of the power business line was prompted by a surge in diesel fuel prices, which have doubled and become the largest cost component for conventional heavy equipment."We have prepared these three new businesses to support future needs, particularly to mitigate the surge in diesel energy prices, which have risen from IDR 13,000 to IDR 26,000 per liter. We are striving not only to diversify in terms of business, but also in the energy sources used because the company's competitiveness going forward depends on that," he said.In mitigating the risk of fuel price fluctuations, the company has implemented a cost adjustment scheme borne by the mine owners, while management focuses on maximizing energy efficiency in the field.Meanwhile, industry players hope the government can maintain a consistent regulatory climate so as not to hinder the expansion of the national mining industry."Our service rates are highly competitive compared with competitors, with a pass-through mechanism for fuel, so price increases are borne by the mine owners while we maintain energy-use efficiency. We also hope that regulations going forward will not flip-flop and will continue to support growth, rather than changing constantly or tending to be exploitative," Ricardo said.

Vale Prepares to Operate Three HPAL Nickel Smelters
Vale Prepares to Operate Three HPAL Nickel Smelters
02 Sep 2026, 04:28 PM 46

PT Vale Indonesia Tbk (INCO) is continuing to accelerate the development of three high-pressure acid leach (HPAL)-based nickel processing plants in Sulawesi to support nickel downstreaming and the electric vehicle battery supply chain.Vale Indonesia Specialist Environment Sustainability Rizki Pratiwi said the three projects are located in Pomalaa, Morowali, and Sorowako, with total production capacity reaching around 246,000 tons of mixed hydroxide precipitate (MHP) per year."The three projects are located in Pomalaa, Morowali, and Sorowako, with total production capacity reaching 246,000 tons of mixed hydroxide precipitate per year," Rizki told reporters on Wednesday (Sept. 2, 2026).The largest project is located in Pomalaa, Southeast Sulawesi, and is being developed in partnership with Ford and Huayou, with an investment of USD 4.5 billion. The HPAL facility has a capacity of 120,000 tons of MHP per year, while the mine is being prepared to produce 21 million wet metric tons (wmt) of limonite and 7 million wmt of saprolite per year. The Pomalaa HPAL facility is targeted to begin operations in 2026.Next, the IGP Morowali project is being developed in partnership with GEM and EcoPro, with an investment of around USD 2 billion. The HPAL facility has an MHP production capacity of around 60,000 tons per year.The Bahodopi mine is being prepared to supply around 10.4 million wmt of limonite and 5.5 million wmt of saprolite per year. The Morowali HPAL facility is targeted for completion in 2027.Meanwhile, the IGP Sorowako Limonite project is being developed in partnership with Huayou, with an investment of around USD 2.2 billion. The HPAL facility has a production capacity of 60,000 tons of MHP per year and will receive around 11.5 million wmt of limonite per year with a minimum nickel grade of 1.10%.The development of the three projects is part of Vale's strategy to increase the added value of nickel commodities domestically while strengthening Indonesia's position in the electric vehicle battery industry supply chain.

J Resources Asia (PSAB) Posts USD 177.89 Million Profit, Up 803%
J Resources Asia (PSAB) Posts USD 177.89 Million Profit, Up 803%
01 Sep 2026, 03:57 PM 45

PT J Resources Asia Pasifik Tbk (PSAB) posted an 803% surge in profit in the first half of 2026.Based on its financial report published in an information disclosure on Tuesday (September 1, 2026), PSAB recorded net profit of USD 177.89 million in the first half of 2026, soaring 803% year-on-year (yoy) from USD 19.69 million in the same period last year.The biggest factor behind the profit surge was a gain from the disposal of a subsidiary amounting to USD 298.60 million, a line item that did not appear at all in the same period last year. The one-off non-operating gain was the single largest contributor to the increase in the company’s profit before tax.On the top line, the company recorded sales of USD 160.64 million, up around 14.5% yoy from USD 140.30 million in the first half of 2025.Interestingly, cost of sales fell sharply from USD 52.31 million to just USD 18.95 million, sending gross profit up 61% to USD 141.69 million from USD 87.99 million previously.On the other hand, several significant expenses weighed on the company’s results during the period, including amortization and write-offs, which jumped sharply to USD 105.57 million from just USD 7.54 million previously.Impairment losses on fixed assets reached USD 59.58 million, far higher than USD 3.75 million a year earlier. Impairment losses on mining properties stood at USD 25.02 million, compared with none in the previous period.General and administrative expenses rose to USD 46.43 million from USD 29.53 million, while losses from changes in the fair value of investments amounted to USD 6.73 million, reversing a modest gain of USD 6.82 thousand a year earlier.Despite these substantial expenses, their impact remained far smaller than the divestment gain, allowing profit before tax to surge to USD 190.25 million from USD 37.79 million in the previous period.PSAB also reported total assets of USD 636 million as of June 2026, down from USD 821.56 million at the end of December 2025. The company’s liabilities and equity stood at USD 201.35 million and USD 435.5 million, respectively.Meanwhile, the company’s total cash and cash equivalents at the end of the period stood at USD 17.06 million, down from USD 39.44 million previously.

Amman Mineral Leverages AI and Experts to Optimize Copper Production
Amman Mineral Leverages AI and Experts to Optimize Copper Production
01 Sep 2026, 03:55 PM 42

Amman Mineral Internasional is relying on collaboration between artificial intelligence (AI) and the expertise of its professionals to optimize copper production in Indonesia, particularly through the Batu Hijau mining project and the development of a smelter in West Nusa Tenggara, as reported by Investor Daily.The company estimates production will reach 900,000 metric tons of dry concentrate in 2026, containing approximately 220,000 tons of copper and 579,000 ounces of gold. The newly completed copper smelter is capable of processing up to 900,000 metric tons of concentrate annually, supporting the production of high-quality copper cathodes and other supporting products.Amman views copper as a strategic mineral whose demand is rising significantly due to the acceleration of electrification, renewable energy, and artificial intelligence technology. Indonesia has proven copper reserves of 21 million tons and is the world’s fifth-largest copper producer.Amman President Commissioner Agoes Projosasmito explained, “The outlook for the global copper industry remains positive. Key opportunities are being driven by copper’s strategic role in electrification, construction, transportation, renewable energy technologies, and AI-based computing.”BRIN Deputy for Development Policy Nunung Nuryartono said the competitiveness of the mineral industry depends on the integration of technology, governance, and sustainability. “Downstreaming is not merely about building smelters, but about building intelligence and accountability at every stage of the industrial value chain,” he said.Nunung added that AI presents opportunities to improve production efficiency and data-driven decision-making, but this must be balanced with good governance to ensure that the environment and public trust are not compromised.Amman has developed an AI system called Artificial Intelligence Dashboard Automation (AIDA), which helps optimize mineral processing at the plant. The system uses historical and real-time data to provide recommendations for more efficient processes and improve mineral recovery rates.Amman President Director Arief Widyawan Sidarto said, “The company applies AI to optimize recovery rates in the flotation process. AI drives greater efficiency by improving metal output relative to mining and processing costs.” He added that the improvement supports more sustainable resource utilization.AIDA does not replace humans but instead strengthens decision-making through collaboration between AI and operational expertise. “Every four hours, the operations and metallurgy teams jointly review AIDA’s recommendations to determine process adjustments,” Arief said.Amman Vice President of Corporate Communications Kartika Octaviana said, “The success lies in the synergy between data, innovation, and the expertise of our team. When technology and human experience work hand in hand, we are able to make better decisions and create greater value.”Amman has increased mineral recovery by around 2.5% through AI-based optimization, a significant achievement for the Batu Hijau operation, which already has best-in-class recovery rates.Didit, a member of Amman’s metallurgy team, also helped develop the Controlled Potential Sulfidisation (CPS) innovation using an Oxidation Reduction Potential (ORP) sensor to address declining copper recovery from stockpile ore caused by oxidation. The innovation successfully increased copper recovery significantly while reducing chemical consumption by up to 18.3%.The success of the innovation was presented at the MetPlant 2026 metallurgy conference in Adelaide, Australia, which serves as a forum for the exchange of best practices in mineral processing.Didit said, “A positive work culture and support from leadership were key to the development of this innovation. This is proof that local talent from West Sumbawa can produce technical work recognized globally.”

Indonesia Starts Construction of First Coal-to-Methanol Gasification Project
Indonesia Starts Construction of First Coal-to-Methanol Gasification Project
31 Aug 2026, 03:51 PM 54

The Indonesian government on Monday broke ground on a national strategic project that will convert coal into methanol at the Batuta Chemical Industrial Park (BCIP) in East Kutai Regency, East Kalimantan.The project is designed to produce around 1.3 million. tons of methanol annually and could reduce Indonesia's foreign exchange spending by as much as IDR 7.1 trillio (USD 400.6 million) per year by replacing imports."This groundbreaking marks the beginning of concrete steps to develop a coal-based methanol industry" Deputy Energy and Mineral Resources Minister Yuliot Tanjung said in a statement."The project is part of our efforts to increase the added value of natural resources, strengthen domestic industries, reduce dependence on imports, and support national energy security and self-sufficiency" he added.The project is being developed by Bumi Etam Chemical (BEC), a jount venture between Arutmin Indonesia and Kaltim Prima Coal, across an area of approximately 943 hectares.BEC will use low-calorie coal, which has relatively limited economic value, as feedstock to produce higher-value products for domestic industries.Once operational, the facility is expected to process up to 7.78 million tons of coal annually with a calorific value of 3,300-3,400 kcal/kg.The coal will be converted into methano meeting standards set by the International Methanol Producers and Consumers Association (IMPCA).The methanol will be used to meet part of Indonesia's domestic demand, particularly from the petrochemical and formaldehyde industries.It is also expected to support the production of Fatty Acid Methyl Ester (FAME), the biodiesel component needed for Indonesia's planned B50 program, which blends diesel fuel with 50% biodiesel.Yuliot said the project is also expected to generate broaded economic benefits, including job creation, growth in supporting industries, and inreased local economic activity.BEC President Director Rio Supin said engineering work on the project began in late July 2026."The first coal gasificiation project in Indonesia is ready to enter the implementation stage, with commissioning targeted for 2029" Rio said.

Indonesia Relaxes DHE SDA Rules for 64 Mining Exporters
Indonesia Relaxes DHE SDA Rules for 64 Mining Exporters
31 Aug 2026, 08:58 AM 752

The government has relaxed the requirements for the placement of Export Proceeds from the Exploitation, Management and Processing of Natural Resources (DHE SDA) for mining sector exporters.The relaxation is stipulated in Article 18A of Government Regulation (PP) No. 21 of 2026.Under the new regulation, mining exporters that meet the criteria are required to place at least 30% of their DHE SDA for a minimum period of three months.The provision is more lenient than the general rules for the non-oil and gas mining sector. Under the general rules, exporters are required to place 100% of their DHE SDA for a minimum period of 12 months.“This policy is aimed at three main objectives: (i) supporting macroeconomic stability and deepening the domestic financial market; (ii) promoting development financing, particularly investment and working capital to accelerate downstreaming of natural resources; and (iii) increasing investment and export performance from natural resource exploitation, management and processing activities,” Deputy Coordinating Minister for Economic Affairs Susiwijono Moegiarso said in a statement in Jakarta on Sunday (Aug. 30, 2026).64 exporters meet the criteriaThe government identified 537 mining exporters’ Taxpayer Identification Numbers (NPWP) based on Export Customs Declaration (PPE) data from the Directorate General of Customs and Excise (DJBC) for the period from March 2025 to July 2026.The data was then matched with data from the Directorate General of General Legal Administration (Ditjen AHU).As a result, 64 NPWPs, or around 12% of the total exporters, met the criteria to utilize the facility under Article 18A.The facility is optional for mining exporters that meet the requirements.Exporters wishing to utilize the relaxation must be established as limited liability companies (PT) and operate in the mining sector.The companies must also have at least one shareholder from a partner country, with an ownership stake of at least 10%.The government has designated five countries as partner countries, namely the United States, China, Hong Kong, Australia, and Canada.“These five countries are those with the largest investment values in Indonesia’s mining sector, while also having bilateral agreements on trade or other trade-related understandings/agreements with Indonesia,” Susiwijono said.Eligible for Placement at 15 BanksExporters utilizing the facility under Article 18A will not only receive relaxation in terms of the amount and duration of DHE SDA placement.They may also place their DHE SDA at foreign exchange banks conducting business activities in foreign currencies.The government has designated 15 foreign exchange banks as placement banks for Special Accounts for DHE SDA.The number comprises five state-owned foreign exchange banks and 10 non-state-owned foreign exchange banks.The special DHE SDA facility will take effect on September 1, 2026.Exporters that meet the criteria but do not wish to use the facility must submit a statement letter to Bank Indonesia.The letter must be submitted no later than five working days after the announcement of the exporter list.If the statement letter is not submitted, exporters will automatically be deemed to have chosen the special facility.Meanwhile, exporters that do not use the special facility will continue to follow the general DHE SDA provisions under Government Regulation No. 2 of 2026.For the non-oil and gas mining sector, the general rules require 100% of DHE SDA to be placed for a minimum period of 12 months at state-owned foreign exchange banks.Meanwhile, the oil and gas mining sector is required to place at least 30% of DHE SDA for a minimum period of three months at state-owned foreign exchange banks.

ARCI Gold Mining Profit Surges 134% to USD 81 Million in H1 2026
ARCI Gold Mining Profit Surges 134% to USD 81 Million in H1 2026
28 Aug 2026, 09:10 AM 400

PT Archi Indonesia Tbk (ARCI) recorded profit for the period attributable to owners of the parent entity of USD 80.25 million in the first half of 2026. The figure surged 132.80% from USD 34.47 million in the same period last year.Citing its financial report submitted through the Indonesia Stock Exchange (IDX) disclosure, the profit was supported by a 67.48% increase in revenue, which rose from USD 192.43 million to USD 322.28 million.In line with the increase in revenue, cost of sales also rose 53.70% to USD 176.27 million from USD 114.69 million. However, the growth in cost of sales remained below the 67.48% growth in revenue, providing the company with greater room to increase gross profit.As a result, Archi Indonesia’s gross profit jumped to USD 146 million in the first half of 2026, up 87.82% from USD 77.73 million in the first half of 2025.On the expense side, selling expenses stood at USD 308,900, up 47.78% from USD 209,000. Meanwhile, general and administrative expenses amounted to USD 7.03 million, increasing 37.54% from USD 5.11 million in the first half of 2025.At the same time, the company recorded a sharp increase in other operating income. The figure reached USD 8.28 million, surging 209.15% from USD 2.68 million previously. Meanwhile, other operating expenses stood at USD 985,000, down 14.70% from USD 1.15 million in the same period last year.The combination of revenue and gross profit growth drove Archi Indonesia’s operating profit to nearly double. The company recorded operating profit of USD 145.96 million in the first half of 2026, up 97.41% from USD 73.93 million in the first half of 2025.Pre-tax performance also showed strong growth. Archi Indonesia recorded profit before income tax expense of USD 129.4 million, up 128.10% from USD 56.7 million in the first half of 2025.After accounting for income tax expense, Archi Indonesia recorded profit for the period of USD 81.46 million. The figure increased 134.05% from USD 34.80 million in the first half of 2025. However, income tax expense also rose significantly, increasing 118.66% from USD 21.92 million to USD 47.93 million.Meanwhile, total assets as of the first half of 2026 stood at IDR 1.07 billion. The figure increased from IDR 1.02 billion at the end of 2025.

Indonesia’s Nickel and Cobalt Reserves Reach IDR 15,000 Trillion
Indonesia’s Nickel and Cobalt Reserves Reach IDR 15,000 Trillion
28 Aug 2026, 09:08 AM 346

Indonesia holds mineral wealth worth around IDR 15,000 trillion. The figure comes from nickel and cobalt reserves, which, based on current market prices, are estimated to be worth USD 800 billion.The size of these reserves provides Indonesia with strategic capital to strengthen its mineral processing industry while accelerating downstreaming so that more of the economic value of mining commodities can be captured domestically.National Economic Council (DEN) Mining and Minerals Expert Team member Nataneil Adhynegara Horansil said the estimate is based on Indonesia’s nickel reserves of around 52 million tons and cobalt reserves of 1.2 million tons.“If we estimate their value based on the current LME market price, the valuation of the reserves is around USD 700 billion for nickel and around USD 50 billion for cobalt,” he said, as quoted by Antara on Thursday (Aug. 27, 2026).“So, the total value of nickel and cobalt is around USD 800 billion,” he added.Nataneil stressed that the USD 800 billion figure does not represent the entire mineral potential held by Indonesia. Rather, it is an estimate of reserves that meet the criteria for monetization based on current market prices.Mineral resources, meanwhile, represent potential deposits that cannot all yet be mined economically. Their utilization depends on various factors, ranging from market conditions and mining economics to environmental considerations.“If we are talking about what is minable, what can already be valued and monetized, we look only at the value of the reserves,” he said.Downstreaming Holds the KeyThe size of Indonesia’s nickel and cobalt reserves is considered to offer significant economic opportunities if managed optimally.“Imagine how much benefit we can derive from these resources. USD 800 billion, if converted into rupiah, would be around IDR 15,000 trillion,” he said.According to Nataneil, one strategy to maximize the economic benefits of this wealth is through nickel downstreaming policies.The policy has transformed Indonesia’s mineral industry structure. Whereas nickel was previously exported largely in the form of raw ore, processing is now carried out domestically to produce higher-value-added products.Indonesia has been able to produce intermediate products such as nickel pig iron (NPI). However, the development of this industrial chain is expected to extend beyond intermediate products.Nataneil hopes the nickel industry value chain can continue to be strengthened into strategic sectors such as battery and electric vehicle production.The development of downstream industries is considered important not only to increase the economic value of mineral reserves, but also to strengthen Indonesia’s position in global industrial supply chains.Currently, Indonesia’s national nickel smelter capacity has reached around 1.8 million tons. Most of these processing facilities are located in industrial areas in Sulawesi.Nickel Product Exports Rise 12-FoldThe impact of downstreaming is also beginning to emerge in the development of Indonesia’s nickel product trade.Nataneil said the value of nickel product exports has risen sharply over the past decade, increasing around 12-fold since 2014.While the value stood at around USD 3 billion per year in 2014, nickel product exports reached USD 37 billion last year.The surge has coincided with an influx of foreign investment into the mineral processing sector. Foreign direct investment (FDI) in the base metals sector reached more than USD 71 billion over the 2015-2025 period.This development shows that downstreaming has driven the creation of new industrial capacity while increasing the economic value Indonesia derives from its mineral commodities.However, the next challenge is to ensure that the development of the nickel and cobalt industries does not stop at higher production or exports.Indonesia needs to continue strengthening its value chain so that the mineral reserves worth around IDR 15,000 trillion can be processed into products with significantly higher added value, including batteries and electric vehicles.

Advertisement


Get Your Pass